Entry into a Material Definitive Agreement, Financial Statements and Exhi

Item 1.01. Entry into a Material Definitive Agreement.

On May 15, 2014, a wholly owned subsidiary of Lakes Entertainment, Inc.
("Lakes") entered into an Amended and Restated Option Agreement ("Amended Option
Agreement") with Penn National Gaming, Inc. ("Penn") relating to land, currently
under option by Penn, owned by Lakes and located in San Diego County,
California, adjacent to the Jamul Indian Village reservation. The original
option agreement by and between Lakes and Penn provided that the purchase price
for the land would be $7.0 million, increasing 1% each year, but that Penn had
no obligation to purchase the land. The Amended Option Agreement reduces the
purchase price of the land to $5.5 million but requires Penn to purchase the
land within ten days after the Jamul Indian Village opens a casino on its
reservation.

A copy of the Amended and Restated Option Agreement is attached as Exhibit 10.1
to this Form 8-K.